Savings for Yearn Vault & Treasury

Subject line: Potential savings for Yearn vaults and treasury: TWAP into positions such as CVX and ETH with zero price impact on Integral SIZE

TLDR

  • The purpose of the discussion post is to make the YFI community aware of a new trading venue, Integral SIZE: https://integral.link which enables token-to-token swap at 30-min TWAP with zero price impact.
  • Yearn vaults and treasury can benefit from TWAP’ing into tokens available on Integral SIZE.
  • Integral SIZE is gradually adding new pairs and can list YFI-WETH pair to allow buyers and sellers of YFI tokens to transact at 30-min TWAP with zero price impact.

Motivation

  • Yearn Finance has been the pioneer in DeFi and has inspired many builders and developers in the space, ourselves included.
  • Given that Yearn has various vaults involving CVX, ETH, and USDC, we want to make aware of a TWAP execution venue with zero price impact to the community through this discussion post. We believe that this new trading venue will benefit YFI vault users, community, and treasury.
  • We also want to gauge the community’s interest in listing YFI-WETH pool on Integral SIZE which would give buyers and sellers of YFI tokens a place to transact YFI in large quantities at 30-min TWAP with zero price impact.

Proposal

  • Trading on Integral SIZE
    • Yearn Finance vault users, community members, treasury can trade CVX, ETH, and USDC tokens on Integral SIZE in large quantity with zero price impact.
    • Benefits include:
      • Price impact saving. Integral SIZE offers execution of CVX <> ETH and USDC <> ETH at 30-min TWAP with zero price impact based on SushiSwap and Uniswap price oracle, respectively.
      • Fee saving. Use CVX-ETH transactions as an example below. The fee saving is less extreme for USDC-ETH swaps.
        • 1 bp on Integral SIZE.
        • 26 bps on Curve.
        • 30 bps on SushiSwap.
        • 1% on Uniswap v3.
      • In a live trade, someone sold ~$424k worth of CVX to ETH on SIZE, saving about 48 bps ($2049).
  • Listing YFI-ETH on Integral SIZE.
    • People who want to transact YFI tokens would benefit from zero price impact trading on Integral SIZE.
    • The execution will be done at 30-min TWAP relative to the YFI-ETH pool on SushiSwap.
  • Further, YFI vault users, community, and treasury can accomplish such transactions within Gnosis Safe App.
    More about SIZE

Integral SIZE is a decentralized exchange built for large trades of ERC-20 tokens. It allows trades to be executed at 30-minute TWAP with zero price impact. We were quoted in an interesting piece by TechCrunch recently regarding DeFi growth and TVL.

Key features:

  • For Traders: zero price impact of large trades (including less liquid tokens).
  • For LPs: passive accrual of yield while achieving mean zero IL.
  • Rely on an external price oracle (such as Uniswap v2 and SushiSwap) for price discovery over time.

Twitter: @IntegralHQ

White paper: https://
assets.integral.link/pdfs/SIZE-Whitepaper.pdf

Documentation: Integral SIZE - Integral SIZE

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